It seems that BNZ was able to give its employees this much freedom, in part, because they had the infrastructure in place to facilitate independent decision-making. The legitimate friction they got, according to the story, came from infrastructure people (e.g. IT and security) who weren't sure they could handle the changes.

The lesson therefore seems to be that in order to empower your employees, your home office needs to be designed with an eye towards customization - all of your systems and procedures should be designed to work seamlessly with de-centralized decision-makers. In other words, your home office is there to provide support, not to provide instructions.

6:18 pm August 8, 2009

Laura D wrote :

My favorite line is, “What everyone learned,” says Blair, “is that when you treat people like adults, they act like adults.” So much that is powerful is related to such simple truths!

8:41 pm August 8, 2009

Henry wrote :

Often, it is not about changing an actual rule or regulation but rather the attitude by upper-management.

11:28 am August 9, 2009

Leo wrote :

Organizations can be likened to Olympic athletes; all are extremely good at what they do but only a handful rise above everyone else and win. The difference between a challenger and winner is very small; yet at the same time as vast as the Grand Canyon. In the realm of athletics focus with respect to training and ability/willingness to take risks at the right time often make the same difference in time necessary to win. It is the element of risk taking that many athletes never quite grasp; they train hard but never go outside the comfort zone.
Within organizations having a hierarchy of rules and procedures you can have decent performance, but you will never have the break-through, kick-tail performance that all desire. Formal rules/procedures assume that one person or a handful of people know what's best for all; while in fact an organization can only be as good as the people within. Even if truly excellent people execute perfectly in a formal rule/procedure environment they can only get so far because the organization never operates out of its comfort zone. I know why organizations don't go outside the comfort zone - it is a scary place to be. It can only be accomplished by: long-term thinking/planning; reasonable compensation practices; continuous education/skill building of employees; and, trusting people that it is in their own interests to make the right call.

3:54 pm August 9, 2009

skyflyer wrote :

Gary Hamel touch-based the same notion of un-necessary control on his book Leading the revolution,
I do really beleive that upper mangement has to have the courage to release most of the control at the benefit of achievement, their focus should on how every empolyee target will meet those the company and what frameworks and configuration should be put on place for allignement, rest should be an accumulation of innovation from each employee of the organisation.

7:50 pm August 9, 2009

Loraine Antrim wrote :

The key here seems to be a shift from "command and control" management to a more collaborative and open environment. But the more telling lesson is not where the control lies: at branch or corporate, the real control lies with the customer. The bank's clients in a long queue is what prompted the change, so the old adage, "customer is king" still applies. All managers take note! Loraine Antrim

9:04 pm August 9, 2009

Kirsten wrote :

Interesting that the tone of the comment about Finsec assumes that unions are a barrier as a matter of course. Unions are collectives made up of employees - so if you're truely talking about employee empowerment then of course unions will be positive. Unions are all about employee empowerment! Unions (ie the collective of employees) will be more likely to support rather than challenge this kind of approach when it's driven by service improvement. So, the BNZ example works because it is truely driven by a genuine desire for service improvement. If the real driver is cost cutting (through reducing pay or conditions of employment) then organisations are better off being honest about this than reframing/internally marketing this as being about service improvement. Cynical approaches like this will result in cynical employee responses and a reduction in employee engagement - and that will be when you'll find employee resistance through their union.

10:56 pm August 9, 2009

Andy A wrote :

There is more than management opposing change ; it's also other factors .

I have seen at a factory were all the workers wanted to work ten hour day and have a three day weekend . The company agreed on the condition that it would not cost the company any extra expenses .
Here came the problem : the Union said that the company will have to pay the workers two hours overtime for every hour worked above eight hours . Of course the company did not accept this and the idea was put to rest .
This is one case were the Union acted against the wishes of all the workers at that factory by fear of creating a precedent that was against Union rules in the contract .

7:02 pm August 10, 2009

Kerrroadgirl wrote :

My husband and I have enjoyed our 7 awesome co-workers (employees) for over 10 years. They know exactly where we stand on every issue. Communication and flexibility is the key!

6:29 am August 11, 2009

Bill Nobles wrote :

Can you please emaill me as to why my posting of yesterday was not posted? It was submitted earlier than the one from Kerroadgirl. I must be unintentionally violating your rules..
Thanks, Bill Noblesbillnobles@optonline.net

8:39 pm August 11, 2009

Bill Nobles wrote :

Gary, freedom has the power to revolutionize management. Our article in the June Management Lab Newsletter (http://www.managementlab.org/files/site/publications/labnotes/mlab-labnotes-012.pdf) describes how a handful of business leaders utilized “freedom” to dramatically out-perform the S&P 500, and why mainstream management has so far failed to recognize their innovative efforts. We will be happy to share a draft of “Freedom-Based Management” which fills that void by identifying the principles and fundamentals others need to create a nimble organizational culture that fully empowers employees.
Bill Nobles & Paul Staley billnobles@optonline.net

10:59 pm August 16, 2009

Kitty Wooley wrote :

What a great article. I would do away with an unwritten rule that communications must pass up and down via the chain of command. While everything is thoroughly vetted, orderly, and predictable that way, and there are fewer mistakes, this practice diminishes employee excitement, innovation, collaboration, and ownership. On the other hand, when you treat people like adults, they do not always act like adults. I.e., they may have to learn how to have greater impact by aligning with organizational goals, or they may have to invest their discretionary time to have enough room to try new things while keeping the trains running. I am a member of an informal multisector network that has been living what you are talking about for a few years. I'm convinced that a both/and situation (hierarchy + network) is preferable to forgoing one for the other.

11:31 pm August 16, 2009

Helene L wrote :

The empowerment at BNZ is made possible because the GM is willing to LISTEN to the manager's idea. The staff know best in their work unit, and in a better position to suggest how the process should be streamlined effectively and efficiently. Empowerment will not succeed without full support from the top leaders, and influence their managers to practise alike. Leaders should continue to support their employees with the freedom to make decisions, without intervening or reprimanding them for mistakes. Instead of monitor, guide. I agree that if your treat employees like adults, they behave like adult. Saying that 'it won't work' will not help, but what the bank did was revised their procedure and regulations to support the new system is commendable. Instead ask 'how can we make it work'...

8:50 am August 21, 2009

Surya wrote :

Respecting the employees and listening to each and every employee really makes them feel empowered. Employees would open up with their innovation only when the managers start listening to them, when the managers strike the right chord with them. As you rightly said "tream them as adults", i would rather say "treat them as humans" before you treat them as employees.

Treating them & caring them as humans is the real investment every organization has to to do get the real productivitity from the teams. I never differentiate my team members by their designations or positions, I treat everyone equally and i really see the difference in the way my team behaves and other teams behave.

Luckily I am in a very good and top pharma organization which respects human values the most.

Nevertheless every organization should start making progress towards this direction, every product patent etc can be copied from an organization except the organizations culture.

5:34 am August 26, 2009

VK Shrotryia wrote :

Nice read. Agreed that employee freedom tends to develop an organization better and empowerment makes things possible and practical. However many indian organizations (esp public sector) may not buy this thesis. If instead of FREEDOM it is put as Autonomy, it serves the purpose better.
I am great fan of Hamel's writings especially on Innovation (studied not just read - Leading the Revolution), this case is another addition in the same directon. The organizations need to have open arms for idea innovation and should encourage people to try out things. It does wonders....
vijay

1:22 pm February 29, 2012

Business model wrote :

Is it feasible to have an person using robust meaningful valuations to generate morally in question choices in business environment just what influences someone's tendency to generate either ...printer lease

4:30 am March 23, 2012

Workplace safety training construction wrote :

You want your workplace to be a safe, pleasant, appealing place to work - whether your work environment is always consistent, as with employees who work in an office building...securitatea muncii

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About Gary Hamel's Management 2.0

Gary Hamel is a management author and consultant. His books include “Leading the Revolution,” “Competing for the Future,” and “The Future of Management.” He’s a visiting professor at London Business School and director of the Management Lab.